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Lithuanian Compliance Officer Responsibilities: A Key Role in Preventing Financial Crimes

In Lithuania, compliance officers play a crucial role in ensuring that financial institutions and other obliged entities comply with the country’s anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The compliance officer is responsible for implementing internal systems and controls to detect, monitor, and report suspicious transactions to the authorities.

Designation of Compliance Officer

According to Article 22 Part 1 of the Law on the Prevention of Money Laundering and Terrorist Financing, financial institutions and other obliged entities must designate senior employees or board members to organize the implementation of AML/CFT prevention measures. The Financial Crime Investigation Service (FCIS) must be notified in writing within seven working days of the designation.

Requirements for Compliance Officer

The compliance officer must have:

  • Education
  • Professional aptitude
  • Abilities
  • Personal qualities
  • Experience
  • An impeccable reputation necessary for performing their duties. The company is required to provide specialized training on AML/CFT measures to its employees, especially those responsible for customer relations and transaction control.

Responsibilities of Compliance Officer

The main responsibilities of the compliance officer include:

  • Development, implementation, and maintenance of an anti-money laundering program
  • Collection and analysis of information on suspicious transactions and reporting to FCIS in case of suspicion of money laundering or terrorist financing
  • Preparation and submission of written statements on compliance with the requirements of the law to the company’s management
  • Maintenance of high-risk customer records and reporting to authorities
  • Maintenance of a risk assessment system for products and services, customers, and other issues related

Frequently Asked Questions

  • To which position should the Compliance Officer be assigned?
    • The Compliance Officer is an employee of the company or part of the governing body, typically the Director of the company.
  • Which unit is responsible for reviewing the work of Compliance Officer?
    • The contact person of a company interacts with state departments and contributes to the fight against money laundering and reducing the risk of terrorist financing.
  • Should the compliance officer be experienced?
    • Yes, it is required to have experience in this area. Only a person with the appropriate education, professional suitability, necessary abilities, personal characteristics, experience, and impeccable reputation can be appointed as the KYC/AML Officer.
  • Is the compliance officer mandatory from the beginning of crypto company’s operations?
    • Compliance Officer must be assigned not later than seven days after informing Registru Centras that the company will perform virtual currency exchange and/or depository virtual currency wallet services.
  • Is it allowed to hire the Compliance Officer outside of Lithuania?
    • Yes, there are no specific laws determining nationality or living address of this specialist.

KYC/AML Officer Service Fee

The service fee for a KYC/AML officer is 750 EUR per month (minimum period of service order - 6 months).